RESEARCH OF PUBLIC-PRIVATE PARTNERSHIP AS A FORM OF INTERACTION BETWEEN THE STATE AND SMALL BUSINESSES IN THE CONSTRUCTION MATERIALS MARKET UNDER MARTIAL LAW
Abstract
This article explores the role of public-private partnerships (PPP) as a mechanism for collaboration between the state and small businesses in Ukraine’s construction materials market under wartime conditions. The study aims to analyze the potential of PPP for rebuilding infrastructure, residential housing, and critical economic facilities, as well as to justify the need for combining public and private resources. The research methodology includes a literature review, comparison of international PPP models (e.g., BOT, DBFO, concessions), and an assessment of infrastructure damage data and construction material needs. It is substantiated that domestic demand for construction materials is driven by residential, commercial, and infrastructure projects. Key forms of collaboration are identified: grant initiatives, simplified tenders, tax incentives, and innovation platforms. The advantages of PPP for small businesses—such as access to financing, technology transfer, and risk-sharing—are outlined, alongside challenges like bureaucracy, lack of experience, and unequal competition. Results indicate that Ukraine’s construction materials market, despite significant destruction, holds growth potential through reconstruction projects, energy efficiency initiatives, and export opportunities. Small businesses, which account for 30% of government contracts, require systemic support. Based on international best practices, recommendations are proposed: creating a transparent regulatory framework, financial guarantees, integrating innovations, and ensuring social legitimacy through public participation. Drawing on global experience, successful PPP models—such as BOT (Build-Operate-Transfer), DBFO (Design-Build-Finance-Operate), concessions, joint ventures (JV), energy performance contracts (EPC), small-scale PPPs, and hybrid models—are identified as adaptable to Ukraine’s context, particularly in construction and infrastructure sectors. Key recommendations for optimizing PPP mechanisms include adopting best practices, reducing bureaucracy, enhancing business training, and actively engaging local communities. Implementing these measures will foster economic recovery, boost the competitiveness of small businesses, and enable sustainable infrastructure transformations.
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